SpiceJet (SG, Delhi International) and Credit Suisse have told the Supreme Court of India that they have resolved their long-running financial dispute, and the judges allowed the budget carrier to approach a court in Madras to withdraw a USD5 million guarantee it had deposited there in May, local media reported.
The two sides had already signed in May the “settlement and consent terms” to end the dispute, which dates back to an unpaid engine maintenance and repair agreement that was signed more than a decade ago.
In December 2021, Credit Suisse issued a winding up order against SpiceJet, and a Madras High Court verdict ordered that the airline deposit the guarantee while an appeal was heard. The case went to the Supreme Court the following month but was later settled out of court. The settlement terms were filed before the Supreme Court on May 25 “for final orders.”
The Supreme Court bench of three judges confirmed on August 18 that “both parties are satisfied with the settlement” and want to withdraw the special leave petition (SLP). In the Indian judicial system, an SLP allows an aggrieved party to be heard in the Supreme Court on appeal. “Accordingly, the application is allowed,” the bench ruled.
“It is noted that some amount was deposited at the Madras High Court in pursuance of the order of the Madras High Court. The parties are at liberty to make an application for the release of the money,” it added.
